Published 10:00 pm, Sunday, June 29, 2003

The contract, which would run through 2005, freezes wages but provides for full payment of health benefits for full-time workers and includes a one-time "workload adjustment payment" of $350 in the second year.

"At first the state didn't want to give us a penny," said Anne Webb, a member of the bargaining team for Service Employees International Union Local 503 and an auditor at the Department of Revenue. "They actually wanted to cut some members' pay. We're proud we won at least some additional compensation through the workload adjustment and some other pay provisions."

The tentative contract covers about 17,400 employees who work in 32 state agencies. The current contract was scheduled to expire at midnight today.

"Clearly, these were difficult negotiations for all parties. It took great effort on the part of everyone to come to the table and negotiate a settlement that was in the best interest of the state and its valuable employees," Kulongoski said in a statement.

About half the work force had been scheduled to get an annual 4.75 percent step raise under the current contract.

The union had sought a 1.5 percent cost-of-living adjustment on Oct. 1, and a 2.5 percent boost on Jan. 1, 2005. But membership also wanted to make sure the state would cover health premium increases if costs rise more than projected.

Union officials are set to meet on July 19, at which time a vote on the contract will be scheduled.